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How exactly does that contradict the headlines: "Silicon Valley: Feel the Froth: Tech Valuations Stir Memories of 1999, but There Are Some Differences"?
by nextstep 13y ago
How exactly does that contradict the headlines:
"Silicon Valley: Feel the Froth: Tech Valuations Stir Memories of 1999, but There Are Some Differences"?
- the_watcher 13y agoI guess if the indicator they are suggesting they are using is at 1/5 of the bubble, that means it stirs memories? "Tech Valuations Stir Memories of 1999, but There Are Some Differences" is actually the subtitle, not the headline.
- thatthatis 13y ago5.6 times revenue is a fairly cheap price for a fast growing company (historically, on the average, ceteris paribus) For example, P&G is currently trading at about 3 times revenue.
- adventured 13y agoOne of the problems with that 5.6 number, is how tilted down it is by larger slower growth companies carrying much lower ratios. Some examples: Facebook: 20 | Workday: 40 | LinkedIn: 27 | Yelp: 30 | Pandora: 9 | RetailMeNot: 12 | Salesforce: 10 | Splunk: 25 | Rocket Fuel: 15 | HomeAway: 8 | Baidu: 15 | Priceline: 10 | Sina.com: 10 | Youku: 11 Twitter: 15? ($650m in expected sales or whatever, $10b assumed valuation) So is there a bubble in a certain class of tech companies? I think frothy is the right word for now. The valuations are clearly very high, but not 1999 high. Right now it reminds me a lot more of 2005 > 2007.
- thatthatis 13y agoData source? What are their growth rates?